Individuals who start drop ship businesses are essentially becoming a wholesalers themselves. Therefore, you will be targeting customers who sell products to others retail. Your customers will include direct sales, telemarketing, mail order and Internet companies. You will not need a vendor's license when selling wholesale. However, you may need a wholesalers license and doing business as designation. Check with the National Wholesalers Association, then follow the necessary steps to start your wholesale business.

Decide what types of products you want to drop ship for other companies. Choose vitamins or fitness items, for example, if you are interested in nutrition and working out.

Go to the library and examine the "Thomas Register of Manufacturers" for manufacturers, according to Entrepreneur.com. Look for manufacturers that sell your type of products. Contact the National Wholesalers Association for potential wholesales sources.

Call various manufacturers and wholesalers and find the best markup on products. Select manufacturers or wholesalers that provide you with at least a 300 percent to 500 percent markup on products, as you will need the large markup to wholesale your own items.

Select a wholesale or manufacturer that also offers drop shipping so you can order products in very small quantities as needed.

Set up a separate business line for potential customer calls. Record a short voice mail greeting that asks customer to leave their name, number and best time to call them.

Create a website for your drop ship business or hire a web designer to create one for you. Take pictures of your top items and feature them on your site.

Set a wholesale price for your products. Price the items so you achieve a 200 percent to 300 percent markup from your customers.

Develop a distributor's kit for all your retail customers. Include copies of order forms in the distributor's kit for retail customers. Create a manual that includes your phone number and hours of operation. Explain in your manual how retail customers should mail a shipping label and payment to your for each customer order. Instruct retail customers to only send you the wholesale cost of the item.

Hire a search engine optimizer to get your website listed on the first page of major search engines, such as Google.com and Lycos.com. Target your ad and listing toward Internet sellers.

Create a sales letter, brochure and order form for you products. Write about the major benefits of ordering your products in the sales letter. Include pictures and explanations of the products in your brochure. Mention your distributor's kit in your letter and brochure. Charge a nominal fee such as $25 for your distributor's kit.

Place classified ads in major business opportunity magazines, including "Small Business Opportunities" and "Entrepreneur." State the type of products you sell in your classified ad. Include your phone number and address for people to call or write for more details.

Things Needed

Manufacturer or wholesale supplier

Business line

Website

Digital camera

Brochures

Sales letters

Catalogs

Distributor's kit

Tip

Maintain a database of your customers. Offer special deals on products periodically. The bulk of your business will come from current customers. It will only cost you a postage stamp to mail out your offers. Also, be fair to your customers. Allow them to return damaged merchandise so they can reimburse their customers. A fair return policy can potentially set you apart from other drop shippers.